It is not just the competition, it is the uncertainty that is responsible for dramatic changes in utility planning, This includes uncertainty about the level and rules of competition that utilities will face, DSM is affected by fears of the future competition, but also by falling avoided costs, consumer resentment of the increasing costs of essential services and an unwillingness and/or inability of utilities and regulators to plan for the longer term. Beyond the confusion of the near term there will be a place for energy efficiency in the social agenda, regardless of whether utilities are the source of funding, The premise of this paper is that, in the interim, utilities will have the motivation and capability to maintain some ratepayer sponsored DSM programmes, The interim driving forces will be customer service needs, operational needs and regulation.